1. Overview

(1) In light of the growing interdependence of Japanese and Chinese economic relations and their increasing importance in the regional and global economies, the economic ministers of both countries deepened their mutual understanding by engaging in candid discussions on addressing the recovery of the world economy, enhancing the mutually beneficial cooperation between Japan and China and its challenges, as well as strengthening global and regional cooperation and their challenges. The ministers agreed on many fronts pertaining to the specific ways and means of cooperation.

(2) The two sides welcomed the fact that this dialogue strengthened the economic dimensions of their "Mutually Beneficial Relationship based on Common Strategic Interests." The two sides confirmed to continue advancing efforts to further enhance and materialize the mutually beneficial relationship. Furthermore, the two sides agreed to fulfill important responsibilities in the region and the international community.

2. Addressing the recovery of the world economy

The two countries, located in Asia--the "growth center" of the world and accounting for approximately 17% of the world's total GDP, shared the view to make a significant contribution to the recovery of the world economy by mutually achieving stable and sustainable economic growth. Japan will implement its New Growth Strategy and Fiscal Management Strategy under the strong political leadership. China confirmed to make steady progress in the implementation of policies with a focus on expanding domestic demand and reforming the economic structure. The two sides concurred to continue developing further mutually beneficial economic relations and advancing efforts towards regional and global economic development.

3. Mutually beneficial cooperation between Japan and China and its challenges

(1) Green economy

The two sides commended the advancement of their cooperation in the areas of energy conservation and environmental protection, and reaffirmed their commitment to enhancing their cooperation.
The two sides shared the view to make efforts on both ends towards the success of the Fifth Japan-China Comprehensive Energy Conservation and Environment Forum, which will be held in Tokyo in October. Furthermore, the two sides concurred to proactively promote cooperation on energy conservation and the environment, including cooperation on model projects in the areas of green economy and low carbon technology.
The two sides positively assessed the progress made in advancing their cooperation such as: cooperation on air, water, waste, and other environmental pollution countermeasures; so-called co-benefit approach simultaneously addressing greenhouse gas emissions and environmental pollution; measures to control the generation of yellow sand and ocean waste; and cooperation among cities regarding eco-towns. Furthermore, the two sides confirmed further promotion of these cooperative measures.
The Chinese side expressed high expectations for the Caofeidian Eco-Industrial Park in Tangshan City. The Japanese side decided to establish a Caofeidian Public-Private Study Group comprised of government bodies, the business community, and relevant organizations to facilitate the information sharing among relevant parties.

(2) Industry cooperation

The two sides shared the view to regularly hold a Japan-China Policy Dialogue on Distribution and Logistics , establish a Japan-China Distribution Dialogue, hold consultations at vice ministerial level among manufacturing and information industry-related agencies on a regular basis, and promote cooperation on information and communication. Furthermore, Japanese side requested to promote cooperation and the easing of regulations in the contents area.

(3) Financial cooperation

The two sides positively evaluated the strengthened partnership between the two countries' financial agencies on a bilateral and multilateral basis, and confirmed to engage in further cooperation for the stability and development of the financial market.
The two sides also commended the entry of their financial institutions in each others' markets and the progress made in expanding their scope of business. The Japanese side requested a flexible response towards Japanese banks regarding deposit-lending ratios, the listing of Japanese exchange-traded funds in the Shanghai Stock Exchange, the expansion of investment opportunities in China, the promotion of capital tie-ups through relaxing foreign equity limitation, and the opening of the third party liability auto insurance business to foreign companies.

(4) Improving the business environment

The Japanese side, in light of the requests from the Japanese business community, raised to the Chinese side a number of issues, including ensuring the transparency of the legal system, regulations on the export of rare earth, the accreditation system for self-innovation products, automobile-related policies, and the protection of intellectual property, and requested the improvement of the business environment in China. Furthermore, the two sides agreed to carry out a dialogue on information security products. Additionally, the Japanese side conveyed their concerns regarding the recurring labor disputes in China.
The two sides shared the view to promote custom cooperation. Both sides concurred to advance efforts towards revising the Japan-China Taxation Agreement.
The Chinese side welcomed the intention expressed by Japanese travel agencies operating in China that they will begin handling the trips to Japan by Chinese people before the end of this year.

The two sides shared the view to cooperate on the management of bonito and tuna resources, joint study on foot-and-mouth disease, and measures to combat illegal logging. The Japanese side expressed renewed interest in the promotion of exports of Japanese agriculture, forestry and fisheries goods to China.

4. Global and regional cooperation and their challenges

(1) Global cooperation

The two sides recognized the importance of international economic cooperation through the G20 and shared the view to actively take part in the efforts leading up to the Seoul Summit. Both sides confirmed the importance of deterring protectionist moves and the importance of the early conclusion of the WTO Doha Round negotiations. The Japanese side expressed high expectations for China's early accession to the WTO Government Procurement Agreement with broad coverage. The two sides reaffirmed their commitment to cooperate for the success of the 10th Meeting of the Conference of the Parties to the Convention on Biological Diversity (CBD-COP10), which will be held in Japan in October 2010. Regarding climate change, the two sides engaged in a constructive exchange of views towards the success of the COP16. With regards to assistance for a third country, the two sides confirmed to advance bilateral dialogue.

(2) Cooperation of the Asia-Pacific region

The Japanese side requested that the negotiations on the Japan-China-ROK Trilateral Investment Agreement proceed in a constructive manner. Furthermore, the two sides shared the view to enhance the joint study by industry, government, and academic researchers for an FTA among Japan, China, and the ROK. Both countries confirmed their intention to actively promote regional financial cooperation. Additionally, they shared the view to actively work together toward the Asia-Pacific Economic Cooperation (APEC) Summit in November 2010, which will be convened in Japan.

5. Other issues

(1) Creation and signing of memorandums between governments and government authorities

The two sides welcomed, on this opportunity of the Third Japan-China High-Level Economic Dialogue, the conclusion and signing of six memorandums between governments and agencies in the areas of the environment and energy conservation, logistics and distribution, manufacturing and information industries, among others, as well as the conclusion of a memorandum between the private entities as outlined in the attached document [PDF]. These memorandums reflect the expansion of Japan-China economic relations on multiple fronts and the growing interdependence of the two economies.

(2) Next meeting

The two sides concurred to hold the Fourth Japan-China High-Level Economic Dialogue next year at a mutually convenient time in Tokyo.